March 18th, 2025

Written by Michael Gillespie

In this Issue:

• Perspective: Breaking down the secrets of successful price increases (Guide included below)
• Tactic: The proven communication protocol for raising prices (template included)
• Outlook: The “show me first” membership model that has rapidly emerged in the competitive subscription landscape

QUOTE OF THE WEEK

“Overall member growth is flat for us. It seems there’s an invisible ceiling that we cannot break through with memberships.”

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A question to consider…

Do you raise membership prices to generate growth or do you generate growth so that you can raise membership prices?

Everything **in today’s email (and your membership program) hinges on this important question.

Let’s dive in.

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PERSPECTIVE

The Price Increase: A Feature or Lever?

Why the overall effectiveness and associated risk of a price increase is determined by its design.

Without a doubt, raising prices can feel like a daunting task.

If you raise too much, then members may churn. If you raise too often, members may churn. If you don’t raise enough, your business might leave significant revenue on the table. The list goes on.

Let’s face it: Price increases are downright risky. But they’re also essential for any operator aiming to build a successful long-term membership business.

The secret to an effective price increase lies in its design.

At the end of the day, price increases fall into one of two categories:

1. A feature: a built-in membership component that evolves with the value, utility and lifecycle of your product over time in order to drive revenue expansion
2. A lever: a tool at your disposal to drive revenue expansion at some future point in time as a response to changing dynamics that are internal or external to your membership

Having a price increase that’s designed as a feature is a proactive strategy.

A price increase that’s designed as a lever is a reactionary strategy.

In my experience, the risk associated with prices increases doesn’t correlate to either of the above design choices. Rather, its the absence of design that introduces the risk involved with raising prices.

The most successful price increases aren’t those that are sprinkled on top of a product. Instead, they’re the ones that are baked in from the start.

And the only way to ensure the long-term effectiveness of your price increase strategy is to design it with clear purpose and know its role within your membership.

📌 Resource: Use this guide to raise prices effectively and efficiently in your membership.

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